HIGHER BIOFUEL. Chemrez Technologies, Inc. president Dean Lao Jr. in a media briefing at the D&L factory in Tanauan City, Batangas on Monday (Sept. 30, 2024). Lao is optimistic that the higher biofuel mix starting Oct. 1 will boost the company's production of biodiesel. (PNA photo by Kris M. Crismundo)
TANAUAN CITY, Batangas – D&L Industries, Inc., the parent company of the country’s largest biodiesel maker Chemrez Technologies Inc., is ready to repurpose its existing factory lines in Quezon City to cater to the higher biofuel demand in the country with the implementation of a Department of Energy (DOE) circular starting Oct. 1.
Chemrez president Dean Lao Jr. told reporters during a media tour at D&L’s new PHP10.5-billion factory here on Monday that its biofuel capacity is currently at 90 million liters, which only cater to a portion of the overall demand.
The demand for biofuel will further increase as the DOE Circular 2024-05-0014 takes effect Tuesday (Oct. 1), wherein all coco methyl ester (CME) blend for all diesel fuel should be at least 3 percent (B3) from the current 2 percent (B2).
This will translate to a 450-million-liter increase in biofuel demand.
Biodiesel mix will further increase to 4 percent (B4) on Oct. 1, 2025, and to 5 percent (B5) on Oct. 1, 2026.
“This directive from the DOE is a huge step towards progress and the development of the biodiesel and coconut industry in general,” Lao said.
He said the company is also weighing if it is reasonable to put up a new factory to cater to the increasing biodiesel demand.
In a statement Monday, the DOE said the higher CME blend will benefit local coconut farmers, biodiesel producers, and other stakeholders in the coconut industry.
The DOE said an additional 900 million coconut nuts are needed to cater to the 1 percentage point increase in biofuel mix annually.
“Consumers will benefit with an increase in mileage from the average of 10 kilometers per liter of diesel to less than 11 kilometers,” the DOE said, noting that a 30,000 kilometers on-road test using 5 percent CME blend reflected a 10-percent improvement in fuel mileage.
“Based on the average diesel pump price of PHP54.70 per liter during the period of 24 to 30 September 2024, this results in estimated savings of PHP0.50 per liter. These savings are expected to offset any potential increase in pump prices due to the 1 percent rise in the CME blend,” it added.
More sustainable
Moreover, Lao said D&L’s Batangas plant is ready to do away with petrochemical and palm-based products with the growing trend for “more natural and sustainable” products, especially from the overseas market.
Lao told the Philippine News Agency that he is optimistic that the new Batangas factory could shift to more sustainable products over a period of three years or less.
“It's driven by consumers. It's very clear that they want more natural products. But after being served with natural products, they want it to be sustainable,” he added.
Petrochemical and palm-based products produce higher greenhouse gas than coconut. (PNA)
